The U.S. Department of Transportation (USDOT) has announced a significant policy update to its Transportation Infrastructure Finance and Innovation Act (TIFIA) credit program. This change will allow all types of transportation infrastructure projects to finance up to 49 percent of eligible costs, as authorized by TIFIA legislation. Previously, a long-standing DOT policy restricted most projects to financing only up to 33 percent, creating challenges for many project sponsors.
U.S. Transportation Secretary Sean P. Duffy said, "Unleashing the full value of the TIFIA program represents another step forward in getting America building again." He emphasized that it is "common sense to allow all eligible projects the same access to our low-interest financing opportunities."
The TIFIA credit program offers flexible, long-term, low-interest loans that help public and private project sponsors accelerate infrastructure delivery at lower costs. Although statute allowed for up to 49 percent financing since 2012, DOT had maintained a cap of 33 percent for most projects until now.
Build America Bureau Executive Director Morteza Farajian, Ph.D., commented on the update: "The TIFIA loan program has proven to be a highly effective tool, supporting the delivery of more than $150 billion in infrastructure investment through over $52 billion in flexible, low-cost loans." He added that this policy update would ensure the program remains fully available to support private and local partners.
In response to customer feedback and data analysis showing minimal taxpayer exposure from TIFIA loans, the Bureau began identifying categorical eligibilities under the first Trump administration in 2018. Successful pilot programs have already allowed some sponsors access to higher financing limits.
Expanding financing options further will enable more projects to expedite delivery and reduce reliance on Federal grants. The streamlined policy also aims to increase efficiency by simplifying due diligence and underwriting processes while ensuring non-Federal investors continue sharing project costs and risks.
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